Arkansas vs New Mexico Taxes: Income, Property & Sales

Does Arkansas or New Mexico have lower taxes? We answer that in a variety of ways below:

Arkansas vs New Mexico Income Tax Comparison

	Arkansas	New Mexico
Income Tax Rates & Thresholds	2.00%: $0-$4,300 4.00%: $4,300-$8,500 4.90%: $8,501+	1.70%: $0-$5,500 3.20%: $5,501-$11,000 4.70%: $11,001-$16,000 4.90%: $16,001-$210,000 5.90%: $210,001+
Median Income	$53,980	$56,420
Income Tax Paid On Median Household Income	$7,352	$7,031
Income After Tax Based on Median Household Income	$46,628	$49,389

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Arkansas vs New Mexico Property Tax Comparison

	Arkansas	New Mexico
Average Property Tax Rate	0.53%	0.60%
Average House Price By State	$199,284	$293,766
Average Property Tax Owed Per Year	$1,056	$1,763
Income After Income Taxes & Property Taxes Based On Median State Household Income	$45,572	$47,626

Arkansas vs New Mexico Sales Tax Comparison

	Arkansas	New Mexico
Average State Sales Tax	6.50%	5.13%
Average Local Sales Tax Across the State	2.97%	2.71%
Average Combined Sales Tax Rate	9.47%	7.84%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$3,942	$3,462
Maximum Disposable Income Based on Median Household Income	$41,629	$44,164

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Arkansas	New Mexico
Income Tax Owed	$4,906	$4,086
After Tax Income	$35,094	$35,914
Income After Income & Property Tax	$34,038	$34,151
Maximum Disposable Income After Income, Property & Sales Taxes	$31,093	$31,669

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Arkansas	New Mexico
Income Tax Owed	$8,933	$7,994
After Tax Income	$51,067	$52,006
Income After Income & Property Tax	$50,011	$50,243
Maximum Disposable Income After Income, Property & Sales Taxes	$45,684	$46,591

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Arkansas	New Mexico
Income Tax Owed	$14,433	$13,374
After Tax Income	$65,567	$66,626
Income After Income & Property Tax	$64,511	$64,863
Maximum Disposable Income After Income, Property & Sales Taxes	$58,930	$60,148

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Arkansas	New Mexico
Income Tax Owed	$19,933	$18,754
After Tax Income	$80,067	$81,246
Income After Income & Property Tax	$79,011	$79,483
Maximum Disposable Income After Income, Property & Sales Taxes	$72,176	$73,705

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Arkansas	New Mexico
Income Tax Owed	$13,525	$11,704
After Tax Income	$86,475	$88,296
Income After Income & Property Tax	$85,419	$86,533
Maximum Disposable Income After Income, Property & Sales Taxes	$78,029	$80,242

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Arkansas	New Mexico
Income Tax Owed	$26,330	$24,209
After Tax Income	$123,670	$125,791
Income After Income & Property Tax	$122,614	$124,028
Maximum Disposable Income After Income, Property & Sales Taxes	$112,007	$115,012

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Arkansas	New Mexico
Income Tax Owed	$40,080	$37,659
After Tax Income	$159,920	$162,341
Income After Income & Property Tax	$158,864	$160,578
Maximum Disposable Income After Income, Property & Sales Taxes	$145,121	$148,904

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Arkansas	New Mexico
Income Tax Owed	$54,749	$52,028
After Tax Income	$195,251	$197,972
Income After Income & Property Tax	$194,195	$196,209
Maximum Disposable Income After Income, Property & Sales Taxes	$177,395	$181,945

FAQ

Does Arkansas or New Mexico have lower income taxes?

Arkansas’s income tax falls into the following range:

• 2.00%: $0-$4,300
• 4.00%: $4,300-$8,500
• 4.90%: $8,501+

Whereas New Mexico’s income tax is the following

• 1.70%: $0-$5,500
• 3.20%: $5,501-$11,000
• 4.70%: $11,001-$16,000
• 4.90%: $16,001-$210,000
• 5.90%: $210,001+

Does Arkansas or New Mexico have lower property taxes?

Arkansas has an average property tax rate of 0.53%

In comparison, New Mexico has an average property tax rate of 0.60%

Does Arkansas or New Mexico have lower sales taxes?

Arkansas has a state sales tax rate of 6.50% and an average local rate of 2.97% for a combined total rate of 9.47%.

In contrast, New Mexico has a state sales tax rate of 5.13% and an average local rate of 2.71% for a combined total rate of 7.84%.

Do you get to keep more money in Arkansas or New Mexico?

Based on median household income after income, property and sales taxes Arkansas gives you a maximum amount of disposable income of $41,629

In comparison, New Mexico gives you $44,164.

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Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/